The University of Michigan's Consumer Sentiment Index slid to 67.8 in February's preliminary reading from 71.1 in the prior month, compared with the 71.9 consensus. The slide came as inflation expectations at the one-year horizon continued to climb.
Year-ahead inflation expectations jumped to +4.3% from +3.3% in January, surpassing the +3.3% consensus.
Stock indexes fell on Friday. The S&P 500 down 0.66%; The Dow Jones Industrial Average fell 234.7 points, or 0.52%. The Nasdaq Composite slid 1.08%.
The latest reading was the lowest since July 2024, with all five index components waning this month.
Current Conditions Index: 68.7 vs. 73.0 expected and 74.0 January.
Consumer Expectations Index: 67.3 vs. 70.0 consensus and 69.3 prior.
"The decrease was pervasive, with Republicans, Independents, and Democrats all posting sentiment declines from January, along with consumers across age and wealth groups," said Surveys of Consumers Director Joanne Hsu.
Five-year implied inflation ticked up to +3.3% from +3.2% in the previous month, also exceeding the +3.2% expected.